Finfluencers: SEBI Curbs and Investor Trust Gap
Why in the news
SEBI keeps acting against misleading finfluencers, yet its study with Kantar finds trust in them remains high.
Key facts
- Their following is strongest among young, first-time investors.
- Rules cover disclosure of affiliations, pay and risks.
- SEBI is strengthening investor education portals.
- Proposals: no profit-sharing with registered intermediaries; no misleading ads or referral models.
| SEBI concern | Meaning |
|---|---|
| Misinformation | Unverified or fraudulent advice |
| Conflict of interest | Paid promotion without disclosure |
| Pump-and-dump | Coordinated tips to inflate prices |
| No registration | Most are not IA or RA |
Key terms
- IA: registered adviser giving personalised advice for a fee.
- RA: issues research with mandatory disclosures.
- Pump-and-dump: prices inflated, then sold at a profit, leaving retail investors with losses.
Exam angle
- Regulator: SEBI; survey partner: Kantar.